Does your small business have tax debts it’s struggling to pay off? You’re not alone. Tens of thousands of small business owners are being chased down by the Australian Taxation Office for unpaid GST and income taxes withheld from staff wages.

In 2019, legislation was passed giving the ATO permission to lodge a tax debt or credit default on the files of businesses that have one or more tax debts to the sum of at least $100,000. During COVID lockdowns, the ATO was lenient on the rule, but in December 2023 returned to normal debt collection.

Since then, the ATO has sent notices to tens of thousands of small businesses advising them that their tax debts would be disclosed to credit-reporting agencies. This has compounded the challenge for small businesses struggling to pay off their tax debt – with hits to their credit scores, they have found it increasingly difficult to obtain loans from bank and non-bank lenders alike, and faced challenges refinancing existing loans to obtain cheaper rates.

That’s where Bizcap can help. With our commitment to saying “yes” more often, we can assist small and medium-sized businesses who need access to capital to pay off their ATO debt, or to fuel their business operations whilst they have money owed to the taxation authorities.

“Bizcap understands how businesses actually operate in the real world and therefore know that sometimes business owners do fall behind with critical payments such as ATO debts,” says Chief Credit Officer Tony Truong.

“When assessing loan applications, we look beyond ATO debts and credit scores to see if there is a viable business to support and help get back on track.”

ATO Commissioner Rob Heferen says it’s a key focus of the taxation office to ensure that businesses pay their tax obligations on time. He notes that of the $50 billion in unpaid taxes, more than two thirds ($32.5 billion) relates to small business. "This means a significant portion of the amount going unpaid is GST collected from consumers or PAYG withholding, withheld from employees’ pay," he says.

If you own a small or medium-sized business that is struggling with ATO debt, get in touch with Bizcap today. As the most open-minded lender in Australia, we can provide fast access to flexible loans, with cash-flow friendly repayment plans. Our online applications take less than 5 minutes to complete and we can make you an obligation-free offer without running a credit check, getting cash into your account today. Apply here.